US and Europe approaching recession?

Investment bank Morgan Stanley said that the US and Europe are close to a recession, which contributed to another round of stock market declines today. A recession does not necessarily mean zero growth or negative change in output. It simply means a general slowdown in economic activity — GDP growth, investment, job creation, household spending, and other macroeconomic variables. Unemployment rises as a consequence.

The continuing financial turmoil in the banking sector plus heavy public debt burden in many big European economies add more uncertainty and volatility to the global economy. These are definitely bad news. We hope that a different breed of entrepreneurs will use these uncertainties to create wealth somewhere.